Why we need to rethink scale

2026-03-27 | original

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Why This Matters

This article highlights the evolving importance of scale in the digital age, challenging traditional notions of growth and cost advantages. As technology advances, the focus shifts from sheer size to efficiency and innovation, impacting how companies strategize for competitiveness. Understanding this shift is crucial for both industry leaders and consumers navigating a rapidly changing landscape.

Key Takeaways

The experience curve concept originated in the 1930s and 1960s, linking production volume to cost reduction.
In the digital era, scale may be less critical than agility and innovation.
Rethinking scale can influence business strategies and consumer expectations in a tech-driven world.

In an increasingly digitized world, it may not be as important as it used to be. In 1966, Bruce Henderson, the founder of the Boston Consulting Group, articulated what would become one of the most influential ideas in the history of business strategy: the experience curve. Its origins date back to T. P. Wright’s original 1936 paper, “Factors Affecting the Cost of Airplanes.” Wright discovered a relationship between the cumulative production of a physical good and the costs associated with producing it. The breakthrough was that you could predict your future cost structure in a way competitors couldn’t.

Explore topics: boston consulting group experience curve bruce henderson t. p. wright airplane production